terry Posted June 20, 2015 Share Posted June 20, 2015 Do you guys take them off gross or net Link to comment Share on other sites More sharing options...
AZVendor Posted June 20, 2015 Share Posted June 20, 2015 Gross most often. Some vendors will convince a client to accept a percent of the net which, of course, benefits the vendor but is like a pig in a poke for the client. What is the net? How would they ever know because net is always a moving target. Even for you, the moving target would be a pita if you actually, honestly, tried to pay based on net. Link to comment Share on other sites More sharing options...
Sparta_Automation Posted June 20, 2015 Share Posted June 20, 2015 I pay based on Net. However this is how I figure net. Total Sales - Cost of Goods - Spoilage - Refunds - Repairs ----------------------- Net Profit Now, I know it's not a true net as I'm not including my time, or gas or taxes or a number of other overhead items, but I feel that this is at least being fair to all parties involved. It can be a pain in the butt figuring it out....and that is why most just pay based upon gross. It's much easier to calculate. Travis Link to comment Share on other sites More sharing options...
RJT Posted June 20, 2015 Share Posted June 20, 2015 Most accounts that are accustomed to getting commission they are usually getting gross sales minus sales tax. Link to comment Share on other sites More sharing options...
terry Posted June 20, 2015 Author Share Posted June 20, 2015 Most accounts that are accustomed to getting commission they are usually getting gross sales minus sales tax. Thank you I was in town today talked to school board they are looking to consolidate all their vending accounts into one. It will be a 35 machine Commitment. In order to do this I would have to get all factory referb's at $2000 a machine. Any advice on where a guy could buy that many machines for that price including shipping ? I also discovered a totally new market I was at a local logistics warehouse and one vending machine on premises. There are tonnes of local trucking companies in town Link to comment Share on other sites More sharing options...
hoosier96 Posted June 20, 2015 Share Posted June 20, 2015 I pay based on net sales. I use gross sales - taxes- COGS. Link to comment Share on other sites More sharing options...
Bvending Posted June 20, 2015 Share Posted June 20, 2015 Net sales. Same as hoosier96 Link to comment Share on other sites More sharing options...
moondog Posted June 20, 2015 Share Posted June 20, 2015 Thank you I was in town today talked to school board they are looking to consolidate all their vending accounts into one. It will be a 35 machine Commitment. In order to do this I would have to get all factory referb's at $2000 a machine. Any advice on where a guy could buy that many machines for that price including shipping ? I also discovered a totally new market I was at a local logistics warehouse and one vending machine on premises. There are tonnes of local trucking companies in town Trucking companies are always good. Around here the vending business survives on distribution centers as we have very little manufacturing. With the schools, I'd talk to AMS about financing 35 new Outsiders before I'd drop $2,000 on a refurb. Link to comment Share on other sites More sharing options...
RJT Posted June 20, 2015 Share Posted June 20, 2015 Just fyi, sometimes you will pay commission based on what the customer request and not how you want to pay it if you want to do business with them. Link to comment Share on other sites More sharing options...
Golfdogs Posted June 20, 2015 Share Posted June 20, 2015 Just fyi, sometimes you will pay commission based on what the customer request and not how you want to pay it if you want to do business with them.. Explain, please. Link to comment Share on other sites More sharing options...
AngryChris Posted June 20, 2015 Share Posted June 20, 2015 Sometimes a customer decides "we want x amount if dollars each month, regardless of your sales." I stay away from companies that try to control the Vending machines in terms of pricing and commissions. One potential customer wanted me to sell things nearly at cost AND give a commission. He tried to convince me that it was good marketing for me and I would get customers. Yeah, sure. He also said my sales would go way up. That part is probably true, but I would still be LOSING money. He countered that point by claiming I can get 24 packs of cans from the bottlers for "a couple dollars.". Again, I told him that it isn't true. "Well, you have to buy enough from them. But with the lower prices and higher sales, you'll get them cheaper.". That was an example of an expert customer who knows more about Vending than a vendor. Link to comment Share on other sites More sharing options...
RJT Posted June 20, 2015 Share Posted June 20, 2015 . Explain, please. If an account is currently getting a percentage of gross sales (maybe gross minus sales tax) you are not going to get it trying to do some "net" percentage taking out sales, tax, COG, spoilage, refunds, etc. That would never work with anyone currently getting % of gross unless their service was so bad they didn't care. If that was the case then I would talk them into no commission and better service. Myself and most my other vendors have gotten away from paying any commissions for the most part. I still have a few out but where I do their prices reflect the % paid. Unless an account is really high volume I pretty much will not pay any commission. If they want to be in the vending business then let them do it and make all the profit or I let another vending company have the headache. Vending is a SERVICE industry and we are providing a service. Do they ask their uniform, paper goods, exterminator, bank, etc for a portion of sales back? IMO, the days of paying a % is about over. The main reason is we are getting close to pricing ourselves beyond what the consumer is willing to pay from a vending machine. Price incenses from companies have killed the idea of paying any % back to accounts. Back in the day you could pay a small commission back now the product cost to much and not much room to add a % back because the consumer simply will not pay those prices needed to pay the % back to the account. Sometimes a customer decides "we want x amount if dollars each month, regardless of your sales." I stay away from companies that try to control the Vending machines in terms of pricing and commissions. One potential customer wanted me to sell things nearly at cost AND give a commission. He tried to convince me that it was good marketing for me and I would get customers. Yeah, sure. He also said my sales would go way up. That part is probably true, but I would still be LOSING money. He countered that point by claiming I can get 24 packs of cans from the bottlers for "a couple dollars.". Again, I told him that it isn't true. "Well, you have to buy enough from them. But with the lower prices and higher sales, you'll get them cheaper.". That was an example of an expert customer who knows more about Vending than a vendor. Oh yes, the good ol "you will sell more if its cheaper". Or "I can buy a case of drinks for X". Yeppers I can buy a case of beer a lot cheaper than I can at a bar also. I offer idiots like this to either sell them or rent them a machine and let them do the vending. I turn down more accounts than I accept for many different reasons and glad I do because many times it just isnt worth the time and effort for the return to do business with them. Link to comment Share on other sites More sharing options...
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